You're correct, this is wide open to funny business, but the bigger evil was
the Verisign-take-all W.L.S. (see my views at www.evil.biz).

My preference is for the 2003-4 system where all parties have a reasonable
chance of getting domains with services like Pool and SnapNames (actually, I
really liked it when I could get them all for $35 each!). There's a chance
that the courts would demand that NSI delete and drop their names, but it's
too late for any voluntary action here:)

Isn't the real issue simply who gets the cash? Even with the old system, the
cash for deleted Tucows domains went to Pool/Snapnames and participating
Registrars. With Tucows doing this, the cash stays home.

When users AGREE to have their supplier to step-in at expiration, there's
nothing stopping this private agreement between two parties. This is simply a
consignment of the domain or, in effect, giving the Registrar "right of first
refusal" upon expiration. There's nothing illegal at all -- regardless of the
ICANN agreement.

Best, Loren


------ Original Message ------
Received: 11:54 PM PST, 03/08/2005
From: Robert L Mathews <[EMAIL PROTECTED]>
To: discuss-list@opensrs.org
Subject: Re: NSI-- What Arrogance!

Loren Stocker wrote:

>We're the good guys here.... Think of "Mom!"

Ah, right. People on this list are thinking "oh, it's okay if Tucows is
doing it". But you've already seen NSI's version. Do you want to see
Register.com's version? How about NameJuice's (aka Domain Registry of
America)? What are you going to say when some other registrars decide,
for advertising purposes, to indefinitely keep *all* expiring domain
names that generate any traffic -- and justify it by saying that they're
paying the previous registrant a portion of the profit, just like
Tucows, and that, just like Tucows, their end-user agreement allows them
to do it, no matter what the RAA says?

A precedent that gives registrars exclusive control over expiring domain
names is dangerous. Do you trust other registrars to run these kinds of
programs ethically? At least if an expiring domain name goes to PENDING
DELETE at the registry, you know the registrar's database guy didn't
just assign it to his brother.

Anecdote: I was recently waiting for an expiring domain name to drop (at
a different registrar). The WHOIS owner had been listed as "FRAUDULENT
ORDER" with the registrar's e-mail address, phone number, nameservers,
etc. for almost the whole year it had been registered; clearly someone
originally tried to rip off the registrar. But then the domain name,
instead of being deleted, was renewed, and the WHOIS updated to new
ownership. Conversations with the new owner strongly suggest that he
bought it directly from the registrar by just offering them money, with
no auction or anything. (The new owner kindly offered to sell it to me
for $20,000. No thanks.) You'll see a lot more of this kind of backroom
dealing if registrars aren't forced to delete expiring domain names. I
do trust Tucows, just like you do -- but I sure don't trust many of the
other registrars who will say "we're just doing a version of what Tucows
does". I'm surprised that Tucows doesn't see the danger of this
precedent to their own business, too. Some other registrars have proven
again and again that given an inch, they'll take a mile. Tucows is
liable to gain an inch but lose a mile here.

There's nothing stopping Tucows from setting up an auction site to sell
domain names that Elliot's Mom (or anyone else) explicitly asks them to
auction. There's also nothing stopping Tucows from entering the batch
pool drop market themselves if they want to get into the "grabbing
valuable domain names for $6 and reselling them" game. But what they're
proposing is something else: auctioning domain names that the registrant
has NOT knowingly asked to auction in a way that prevents anyone else in
the domain name community from getting any chance at them. That's
verging on monopolistic: it only makes sense for Tucows to do it because
they have a large existing market share. It locks other players out of
the process, placing all Tucows expiring domain names off limits to
other companies. If a few more large registrars do the same thing, 99%
of valuable domain names will, in effect, no longer expire and no longer
be available through third-party companies like Pool. If you want one,
you'll have to jump through whatever hoops the current registrar tells
you to jump through. Hoping for things like a 35% auction fee when you
deal with a particularly greedy registrar? This is a great way to get
that. Do you really think removing aftermarket competition helps the
free market for domain names?

I think someone suggested that the auction process is akin to your house
being auctioned if you abandon it and don't pay your property taxes. If
that's so, what Tucows is proposing is the equivalent of the people in
the county property records office getting to run the auctions
themselves and personally pocket a percentage of the profit. In other
words, there is a reason that auctions of public resources are usually
run through a transparent, agreed process by a third party. We may not
like much about the current aftermarket system, but at least we know
that Pool.com (or whoever) played by the same rules available to the
rest of us to get that domain name in the first place.


> Elliot, there's no reason to not update the User Agreement right away to
> allow for this.

I can't tell if you're joking or not. Just in case you're not:

Tucows's legally binding ICANN contract requires them to cancel all
expired domain names at the registry if they don't hear from the
rgeistrant. It's in pretty plain English that doesn't require a lawyer
to parse; the letter and spirit of it are both clear.

It would demonstrate a lack of understanding to suggest that Tucows
update the end user agreement to "allow" them to do something their
ICANN contract prohibits.

--
Robert L Mathews, Tiger Technologies       http://www.tigertech.net/

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